No ‘silver bullet’ to network security, say businesses

A new survey has shown that European companies suffered significant financial loses as a result of security breaches and misuse of data and IT systems by staff. Businesses say there is no silver bullet to prevent loses.

The research also revealed that quarter of the businesses had suffered damage as a result of computer attacks, such as phishing and hacking.

Shaun Cooper, ACE's senior network risk underwriter, commented: "There is no 'silver bullet' to prevent losses from downtime, security breaches or misuse of IT by staff. Technology cannot guarantee network security.”

In response to the growth of IT security risks, 70 percent of respondents said they are planning to invest in security solutions such as firewalls and anti-virus software.

"Although many firms in the survey saw increased investment in business continuity and disaster recovery planning as key areas over the next three years, the research also reveals the lack of awareness of alternatives such as risk transfer opportunities, as a means of reducing the impact of technology failure or criminal acts,” said Cooper.

ACE European Group commented on the results of the survey: "ACE's own experience as underwriters of specialist network risk insurance shows that businesses believe their traditional property and liability programmes will cover losses. But generally they do not cover damage to intangible assets, which leaves companies vulnerable. Business must recognise that transferring the risks to vehicles such as specialist technology insurance products will reduce their exposure to significant financial losses."

The survey, conducted by the Economist Intelligence Unit and sponsored by ACE European Group, polled senior risk managers and business leaders throughout Europe